Altcoin News: Ripple Has Filed a Motion to Dismiss a Lawsuit
September 20, 2019, by Marko Vidrih on ALTCOIN MAGAZINE
The American fintech company Ripple has filed a motion to dismiss the alleged sale of unregistered securities.
The company builds its defense on the allegation that the plaintiff Bradley Sostack has no reason to sue them. Ripple states that Sostack has not filed a lawsuit within three years of the initial cryptocurrency offer in 2013.
At the same time, the company avoids directly mentioning the status of XRP cryptocurrency as a security, only noting:
“Purchasing XRP is not an ‘investment’ in Ripple; there is no common enterprise between Ripple and XRP purchasers; there was no promise that Ripple would help generate profits for XRP holders; and the XRP Ledger is decentralized.”
Ripple also emphasizes that the plaintiff “represents the“ general public ”that acquired XRP during the two-week period in January 2018, that is, in the secondary market.”
In addition, since XRP’s status as a security has not been proven, buyers are not subject to consumer protection rules in accordance with California laws. Based on these arguments, Ripple asks to dismiss Sostack’s lawsuit without the possibility of re-filing.
In August, a group of investors amended the lawsuit against Ripple, indicating that the company violated both federal and state laws, which, according to lawyers, gives them additional chances of success at least at one level. Recognition of XRP as a security may have consequences not only for participants in a particular proceeding but also for further circulation of cryptocurrency.
Author: Marko Vidrih
